95. Creditors may accept composition or scheme by special resolution
Feedback & supportLast amended by an amending law of 1999.
Where a bankruptcy order has been made, the creditors who have proved their debts may, if they think fit —
at a general meeting of creditors; or
in writing,by special resolution, resolve to accept a proposal for a composition in satisfaction of the debts due to them under the bankruptcy, or for a scheme of arrangement of the bankrupt’s affairs.
A meeting under subsection (1)(a) shall be summoned by the Official Assignee by not less than 21 days’ notice.
Official Assignee
“Official Assignee” includes a Deputy Official Assignee, a Senior Assistant Official Assignee and an Assistant Official Assignee;
A special resolution in writing under subsection (1)(b) shall be sought by a notice from the Official Assignee giving the creditors 21 days to reply.
special resolution
“special resolution” means a resolution passed by a majority in number and at least three-fourths in value of the creditors present personally or by proxy at a meeting of creditors and voting on the resolution;
Any notice under this section shall state generally the terms of the proposal and shall be accompanied by a report of the Official Assignee thereon.
Where a special resolution is sought at a general meeting of creditors under subsection (1)(a), any creditor who has proved his debt may assent to or dissent from the composition or scheme by a letter addressed to the Official Assignee in the prescribed form, and attested by a witness, and sent or posted so as to be received by the Official Assignee not later than 3 days preceding the meeting, and a creditor so assenting or dissenting shall be taken as having been present and voting at that meeting.
creditor
“creditor”, in relation to a debtor proposing a voluntary arrangement under Part V, means a creditor to whom the debtor owes a debt provable in bankruptcy;
Where a special resolution is sought in writing under subsection (1)(b), any creditor who has proved his debt shall assent to or dissent from the composition or scheme by a letter addressed to the Official Assignee, and sent or posted so as to be received by the Official Assignee not later than 21 days from the date of the Official Assignee’s notice.
debt
“debt” means any debt, or any liability to pay money, which is unsecured, present, certain, and of an amount that is fixed or liquidated;
The composition or scheme shall not be binding on the creditors unless the bankruptcy order to which it relates is annulled under section 95A.
For the purposes of this section, “special resolution” means —
in relation to a special resolution sought under subsection (1)(a), a resolution passed at a general meeting of creditors by a majority in number and at least three-fourths in value of the creditors who have proved their debts, taking those creditors who do not attend personally or by proxy at the meeting as having voted in favour of the resolution; and
in relation to a special resolution sought under subsection (1)(b), a resolution approved in writing by a majority in number and at least three-fourths in value of the creditors who have proved their debts, taking those creditors who fail to assent to or dissent from the composition or scheme in writing as having assented to the resolution.